COMPONENTS OF AN INFORMATION SYSTEM

A system is a set of components (subsystems) that operate together to

achieve certain objectives. The objectives of a system are realized in its
outputs. An information system is a system that accepts data resources as
input and processes them into information products as output.

An information system depends on the resources of people (end users and

IS specialists), hardware (machines and media), software (programs and
procedures), data (data and knowledge basis), and networks
(communications media and network support) to perform input,
processing, output, storage, and control activities that convert data
resources into information products.

This information system model highlights the relationships among the

components and activities of information systems. It provides a
framework that emphasizes four major concepts that can be applied to all
types of information systems:
• People, hardware, software, data, and networks are the five basic
resources of information systems.
• People resources include end users and IS specialists, hardware
resources consist of machines and media, software resources include
both programs and procedures, data resources can include data and
knowledge bases, and network resources include communications
media and networks.
• Data resources are transformed by information processing activities
into a variety of information products for end users.
• Information processing consists of input, processing, output, storage,
and control activities.

Information System Resources

1. People Resources

People are required for the operation of all information systems. These
people resources include end users and IS specialists.

• End users (also called users or clients) are people who use an
information system or the information it produces. They can be
accountants, salespersons, engineers, clerks, customers, or
managers. Most of us are information system end users.
• IS Specialists are people who develop and operate information
systems. They include systems analysts, programmers, computer
operators, and other managerial technical, and clerical IS personnel.
Briefly, systems analysts design information systems based on the
information requirements of end uses, programmers prepare
computer programs based on the specifications of systems analysts,
and computer operators operate large computer systems.
2. Hardware Resources

Hardware: is the tangible, physical portion of an information system –

the part you can touch. Computers, keyboards, disk drives, and flash
drives are all examples of information systems hardware.

The concept of Hardware resources includes all physical devices and

materials used in information processing. Specially, it includes not only
machines, such as computers and other equipment, but also all data media,
that is, all tangible objects on which data is recorded, from sheets of paper
to magnetic disks. Example of hardware in computer-based information
systems are:

• Computer systems, which consist of central processing units

containing microprocessors, and variety of interconnected
peripheral devices. Examples are microcomputer systems, midrange
computer systems, and large mainframe computer systems.
• Computer peripherals, which are devices such as a keyboard or
electronic mouse for input of data and commands, a video screen or
printer for output of information, and magnetic or optical disks for
storage of data resources.

3. Software Resources

Software: is the set of instructions that tell the hardware what to do.
Software is not tangible – it cannot be touched. Two main categories of
software are: Operating Systems and Application software. Operating
Systems software provides the interface between the hardware and the
Application software. Examples of operating systems for a personal
computer include Microsoft Windows and Ubuntu Linux. The mobile
phone operating system market is dominated by Google Android and
Apple iOS. Application software allows the user to perform tasks such as
creating documents, recording data in a spreadsheet, or messaging a friend.

The concept of Software Resources includes all sets of information

processing instructions. This generic concept of software includes not
only the sets of operating instructions called programs, which direct and
control computer hardware, but also the sets of information processing
instructions needed by people, called procedures.

It is important to understand that even information systems that don’t use

computers have a software resource component. This is true even for the
information systems of ancient times, or the manual and machine-
supported information systems still used in the world today. They all
require software resources in the form of information processing
instructions and procedures in order to properly capture, process, and
disseminate information to their users.

The following are the examples of software resources:

• System Software, such as an operating system program, which con

controls and supports the operations of a computer system.
• Application Software, which are programs that direct processing
for a particular use of computers by end users. Examples are a sales
analysis program, a payroll program, and a work processing
program.
• Procedures, which are operating instructions for the people who
will use an information system. Examples are instructions for filling
out a paper form or using a software package.

4. Data Resources
Data is more than the raw material of information systems. The concept
of data resources has been broadened by managers and information
systems professionals. They realize that data constitutes a valuable
organization resource. Thus, you should view data as data resources that
must be managed effectively to benefit all end users in an organization.

Data can take many forms, including traditional alphanumeric data,

composed of numbers and alphabetical and other characters that describe
business transactions and other events and entities. Text data, consisting
of sentences and paragraphs used in written communications; image data,
such as graphic shapes and figures; and audio data, the human voice and
other sounds, are also important forms of data.

The data resources of information systems are typically organized into:

• Database that hold processed and organized data.

• Knowledge bases that hold knowledge in variety of forms such as
facts, rules, and case examples about successful business practices.

For example, data about sales transactions may be accumulated and stored
in a sales database for subsequent processing that yields daily, weekly,
and monthly sales analysis reports for management. Knowledge bases are
used by knowledge management systems and expert systems to share
knowledge and give expert advice on specific subjects.

Data Vs Information: The word data is the plural of datum, though data
commonly represents both singular and plural forms. Data are raw facts
or observations, typically about physical phenomena or business
transactions. For example, a spacecraft launch or the sale of an automobile
would generate a lot of data describing those events. More specifically,
data are objective measurements of the attributes (the characteristics) of
entities (such as people, places, things, and events).
Example: A spacecraft launch generates vast amounts of data. Electronic
transmissions of data (telemetry) form thousands of sensors are converted
to numeric and text data by computers. Voice and image data are also
captured through video and radio monitoring of the launch by mission
controllers. Of course, buying a car or an airline ticket also produces a lot
of data. Just think of the hundreds of facts needed to describe the
characteristics of the car you want and its financing, or the details for even
the simplest airline reservation.

Peoples often use the terms data and information interchangeably.

However, it is better to view data as raw material resources that are
processed into finished information products. Then we can define
information as data that have been converted into a meaningful and useful
context for specific end users. Thus, data are usually subjected to a value-
added process (we call data processing or information processing) where
(1) its form is aggregated, manipulated, and organized; (2) its content is
analyzed and view information as processed data placed in a context for
human user. So you should view information as processed data placed in
a context that gives it value for specific end users.

Example: Names, quantities, and dollar amounts recorded on sales forms

represent data about sales transactions. However, a sales manager may not
regard these as information. Only after such facts are properly organized
and manipulated can meaningful sales information be furnished,
specifying, for example, the amount of sales by product type, sales
territory, or sales persons.

5. Network Resources

Telecommunications networks like the Internet, intranets, and extranets

have become essential to the successful operations of all types of
organizations and their computer-based information systems.
Telecommunications networks consist of computers, communications
processors, and other devices interconnected by communications media
and controlled by communications software. The concept of Network
resources emphasizes that communications networks are a fundamental
resource component of all information systems. Network resources
include:

• Communication media, Examples include twisted pair wire,

coaxial cable, fiber-optic cable, microwave systems, and
communication satellite systems.
• Network Support, This generic category includes all of the people,
hardware, software, and data resources that directly support the
operation and use of a communications network. Examples include
communications control software such as network operating
systems and Internet packages.

Telecommunications is how computers share information with each other.

The first thing that may come to mind is the internet, and you're correct.
But telecommunications can be broken down further.

Some connections are physical: coaxial and fiber-optic cables are physical
wires used by telephone, internet, and cable providers to carry data. Others
are wireless: think networks like local area networks (LANs) and wide
area networks (WANs). Microwaves and radio waves are also invisible
channels that transmit data across devices.

Telecommunications makes it possible to access data via the cloud—

without these systems in place, all data would have to be stored on one
device.
In summary, these five components together make up the five component
framework, which are the five fundamental components of an
information system. First you will need the hardware in order to start off
your system. Then you must use the software in order to run you hardware.
After you have set up your hardware and loaded up the software to run it,
you will need data to input into your hardware. Once you have your data
ready you will need procedures set in play to properly store your data
within the system, and last you will need people in order to put in the data
and keep the system up and running properly at all times. As you can see,
you will need every component in order to ensure that you have a
functional running information system.